Assets - Anything of value that is owned by the business, Liablility - Amounts that are OWED by the business to other people or organisations outside of the business, Net worth - The financial value of the owner after paying all liabilities, Equity - Difference between assets and liabilities, Financial Statements - Reports that summarize the financial condition and operations of a business, Accounting - The process of planning, recording, analysing, and interpreting financial information, Owners equity - assets = liabilities + ___________ __________, Accounting equation - The equation showing the relationship among assets, liabilities and owner's equity, Capital account - An account used to summarise the owner's equity of a business, Transaction - Any business transaction that changes assets, liabilities, or owner's equity, Revenue - Is income earned by the business, Accounts Receivable - When services or goods are sold on account to be paid for later, Accounts Payable - Money owed to an outside business or individual for items bought on account that will be paid for later, Drawings - Decreases in owner's equity, Debit - Amount recorded on the left side of the T account , Credit - Amount recorded on the right side of the T account , Expenses - Are costs incurred in the earning of revenue, Account - A device used in accounting to record all changes regarding an item,

Accounting Terms

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